Rs12 Billion Project Enters Construction Phase
Work has begun on a Rs12 billion project aimed at modernizing Pakistan’s Gadani shipbreaking yard and upgrading its infrastructure to meet international safety and environmental standards.
Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry announced the development while chairing a steering committee meeting in Islamabad to review progress on the overhaul.
The project is intended to transform Gadani’s traditional shipbreaking operations into a more modern and environmentally responsible ship-recycling industry.
Hospital, Labour Colony and School Under Construction
Physical construction has started on several important facilities at the yard.
These include a 30-bed hospital, a labour colony, a school and solar power infrastructure. The social infrastructure component is designed to improve basic services and living conditions for workers and communities associated with the shipbreaking industry.
The minister said the objective is to establish a safer and more sustainable ship-recycling environment while improving the overall operational capacity of the yard.
Industrial Infrastructure to Be Upgraded
The modernization project covers a wide range of industrial and public infrastructure.
Plans include 32 kilometres of internal roads, a public park, hazardous and industrial waste-treatment facilities, fire and rescue stations and dedicated water-treatment systems.
These facilities are expected to address some of the key safety, environmental and operational challenges associated with ship recycling.
The improvements could also strengthen Gadani’s role in Pakistan’s steel-scrap market, where shipbreaking remains an important source of raw material for the country’s wider industrial supply chain.
Project Moves Into Procurement and Construction
Project Director Saeed Ahmed Umrani told the steering committee that implementation has entered the active procurement and construction phase.
The project is backed by a federal Public Sector Development Programme (PSDP) allocation of Rs780 million for the 2026-27 financial year.
The latest progress indicates that the modernization plan has moved beyond the planning stage, with construction now underway on key components.
Gadani to Align With International Ship-Recycling Standards
A major objective of the overhaul is to bring Gadani shipbreaking yard in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
The convention sets international standards aimed at improving the safety and environmental performance of ship-recycling operations.
Aligning the yard with these standards could help improve Pakistan’s position in the international ship-recycling industry while addressing concerns surrounding worker safety, hazardous materials and waste management.
Safety and Environmental Compliance Take Centre Stage
Shipbreaking involves complex industrial activities and can expose workers and surrounding areas to hazardous materials if appropriate safeguards are not in place.
The inclusion of waste-treatment systems, fire and rescue facilities and water-treatment infrastructure indicates a broader effort to address these risks through dedicated facilities.
The modernization is therefore not limited to improving the yard’s physical appearance or industrial capacity. It is also aimed at establishing stronger systems for workplace safety and environmental management.
Government Pushes for Faster Implementation
Minister Junaid Anwar Chaudhry directed project authorities to maintain momentum and ensure that the new infrastructure meets strict operational benchmarks.
The government’s focus is to ensure that the project delivers a modern ship-recycling facility capable of operating according to internationally recognized safety and environmental requirements.
For Gadani, the overhaul could mark a significant shift from conventional shipbreaking practices toward a more structured and sustainable industrial model.